For one whole month, the Bitcoin community has been getting one bad news after another. Here are finally some good news: Asia’s richest man, Li Ka-shing, has decided to invest in Bitpay, a service that uses Bitcoin.
In the last month or so, one of the largest Bitcoin exchanges based in China stopped dealing in Chinese Yuan. This was a huge setback for the Bitcoin community, significantly impacting the value of the digital currency. To top it, Indian regulators have started issuing warnings against Bitcoin, prompting a shut-down of numerous Bitcoin exchanges in the country.
These incidents remind us that governments will never be comfortable with the idea of a decentralized, virtual currency. Despite that, investors like Li may turn out to be the key components in the success of Bitcoin. Horizons Ventures, the venture capital company through which Li has made his investment, has pooled up a total of $2.7 million for Bitpay.
Bitpay aims to become the Bitcoin-using alternative of PayPal. It still remains to be seen whether or not Bitcoin has a stable future, but if it does, Bitpay is already positioning it excellently. Moreover, Li is investing not directly on the value of Bitcoin but instead, in providing infrastructure for a Bitcoin-related service.
In the words of an analyst, “Just like investors in days gone by made more money out of selling shovels and picks to gold-diggers than anyone ever made out of the gold mine, he is investing in the peripheral activity that bitcoin has generated.” This hints that although investors want in on the digital currency boom, they will play it very safe for now.